Woodbridge Mortgage Investment Fund: What Investors Must Know

The top-rated investment fraud attorneys at Sonn Law Group are currently investigating any and all complaints against Woodbridge Mortgage Investment Funds. If you have lost money after investing in a Woodbridge financial product, you need to know your legal rights. We can help. Our firm is reviewing all Woodbridge mortgage products and related funds, including:

Woodbridge Mortgage Investment Fund 1;

Woodbridge Mortgage Investment Fund 2;

Woodbridge Mortgage Investment Fund 3;

Woodbridge Mortgage Investment Fund 4; and

Woodbridge Mortgage Investment Fund PA.

In recent months, the Securities and Exchange Commission (SEC) has launched a deep investigation into this company. On December 4th, 2017, Reuters reported that Woodbridge has filed for bankruptcy protection. The company is now trying to leave innocent investors on the hook for deep financial losses. If you put your money into any Woodbridge Mortgage Investment Fund, please call our law firm today. We will protect your legal rights and financial interests.

What You Need to Know About Woodbridge Mortgage Investment Fund

Over the last few years, Woodbridge Wealth has been offering a number of different investment products to the public. Many of these products were mortgage-based products, including First Position Commercial Mortgage (FPCM) Notes. These are complex mortgage products that were not fully understood by investors. These products were being marketed by the company as a safe and secure way for investors to make an above-market return. Yet, the reality was far different.

For the most part, these funds hold commercial real estate mortgages. In its marketing materials, Woodbridge has been touting the fact that its investors can reasonably expect returns of five percent to seven percent. Additionally, investors were promised a short-term holding period (relative liquidity) and low risk.

The commercial mortgages held in these funds were supposedly ‘luxury real estate’. However, in this case, there appears to be far less than meets the eye. The lofty promises have not materialized, and state and federal securities regulators have uncovered evidence of a massive fraud scheme.

Allegations of Misconduct: Unregistered Securities and False Promises

Instead of providing investors with safe and reliable returns on its mortgage investments funds, Woodbridge has run into major problems. The company is facing investigation from federal regulators (the SEC) and several different state regulators.

For example, along with many other agencies, the Colorado Securities Division has raised allegations that the company has committed major securities law violations. Colorado state regulators raised the same concerns that have been raised in other states and by the SEC. Some of their specific complaints are as follows:

Woodbridge representatives have been making misleading statements in order to induce investment in their mortgage fund products;

Woodbridge has failed to follow securities registration and representative licensure requirements; and

The company appears to have no way to pay back investors should their mortgage loans default.

The conduct of Woodbridge is extremely alarming. Officials at the company are pleading the Fifth Amendment in response to questions being asked by investigators. The fact that the company has failed to comply with much of the SEC’s investigation so far is another major red flag. In the fall of 2017, the SEC issued subpoenas for more than 200 LLCs that are believed to be connected to Woodbridge.

Among Missed Payments, Woodbridge Has Filed for Chapter 11 Bankruptcy

The concerns raised by securities industry regulators are now becoming a real problem. As allegations of serious misconduct swirl over the company, Woodbridge is burning investors with missed payments.

In earlier December, Woodbridge informed the public that investors in the mortgage fund would not be paid their monthly dividends. The company is blaming rising legal costs and other regulatory issues for the missed payment, though that excuse falls flat.

Our own Jeffrey R. Sonn was quoted in the report from InvestmentNews.com. As Mr. Sonn informed the reporters, he is already representing six investors who were not paid by Woodbridge. Mr. Sonn consulted with some of the financial advisors who helped to sell these products to investors, and they “feel duped as well”.

Even investment professionals are having trouble getting any sort of helpful response from the company. Sadly, as happens in many investment fraud cases, there is evidence to suggest that elderly and vulnerable investors were targeted by representatives of Woodbridge.

In its bankruptcy filing, Woodbridge officials informed the court that the company owed approximately $750 million in debt. Though, as Mr. Sonn noted to reporters, Woodbridge itself claims to have raised more than $1 billion from investors. A substantial amount of money has not been properly accounted for. Investors who own any type of Woodbridge Mortgage Investment Fund need to be ready to take action to protect their rights.

How an Investment Fraud Attorney Can Help

At Sonn Law Group, our dedicated investment fraud team is now conducting a full-scale investigation into all of the Woodbridge Mortgage Investment Funds as well as all other associated financial products. We are prepared to take whatever action is necessary to protect the rights of innocent investors. Any parties who committed fraud or who cost investors money through their negligence must be held fully accountable for their actions.

Beyond Woodbridge itself, other brokerage firms might bear liability for investors losses. Broker-dealers and financial advisors have a duty to vet products before offering them to their clients. If you purchased a Woodbridge Mortgage Investment Fund product through your registered financial advisor or brokerage firm, you may be able to hold them responsible for your losses.

Contact Sonn Law Group Today

At Sonn Law Group, we have helped many investors recover fair compensation for their financial losses. If you sustained significant financial losses investing in a Woodbridge Mortgage Investment Fund, our attorneys are interested in speaking to you. We offer free, fully confidential legal consultations. Our attorneys take on all claims using contingency fee arrangements, that means our lawyers do not get paid unless we win or successfully settle your claim. Call us now for immediate assistance.

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The stockbroker and investment fraud lawyers at Sonn Law Group dedicate their entire practice to protecting the interests of investors who have lost money as a result of the negligent or wrongful conduct of those entrusted with protecting and growing our money. We fight to level the playing field between large corporations and the public investor.